India’s Consumer Price Index (CPI) fell to 5.22%, a four-month low, in December 2024, compared to 6.21% in October 2024 which was a 14-month high. This decline in inflation is largely attributed to a drop in prices of several food items including vegetables, pulses, sugar and cereals. The Reserve Bank of India (RBI) has an inflation target of 4% (with a tolerance of 2% on either side) and has been working towards keeping inflation within the range through various measures including the monetary policy.

The nation’s Wholesale Price Index (WPI) has increased from 1.89% in November 2024 to 2.37% in December 2024. This rise has been attributed to an increase in the price of food articles and manufacturing of food products.   

The Index of Industrial Production (IIP) has risen to a six-month high of 5.2% in November 2024 as compared to 3.7% in October. Within that, the country’s core sector output has expanded to a four-month high of 4.3% in November compared to 3.7% in the previous month owing to four of the eight primary sectors exhibiting better performance. The manufacturing sector, however, has demonstrated the strongest growth among all at 5.8% in November compared to 4.1% in the previous month.     

CPI measures changes in prices of goods and services purchased by consumers. The Wholesale Price Index (WPI) is considered an important measure of the dynamic of movement of prices. It is widely used by several bodies including the government, banks, industry and businesses. IIP is representative of the performance of various industrial sectors of the economy.

CPI numbers are released by the Ministry of Statistic and Programme Implementation (MoSPI) on a monthly basis. IIP numbers are released by MoSPI on a monthly basis with a six-week lag. WPI numbers are released by the Office of the Economic Adviser to the Government of India every month.

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